ALLEN'S 

POLITICAL 

ESSAYS 



BY 

JOHN BATEMAN ALLEN 

Copyrighted 1909 




Published by 
ALLEN-CLANCEY AGENCY 

Walla Walla, Washington 



ALLEN'S 

POLITICAL 

ESSAYS 



BY 

JOHN BATEMAN ALLEN 

Gopyrighted 1909 




Published by 

ALLEN-CLANCEY AGENCY 

Walla Walla, Washington 






J\hv° 



PREFACE 

These essays are not intended as a treatise or to 
exhaust the subjects, but it is hoped they will be 
found of value in clarifying a distressing economic 
condition. 



Contents 



Electric Power ........ 5 

Telephones ........ 10 

Letter to Hon. Eugene Tausick . . . . 14 

Letter to Thomas H. Brents, Esq. . . . . 16 

Letter to Hon. Leslie M. Shaw 20 

Letter to Hon. James R. Garfield . . . 21 

Secret Societies . . . . . . . . 24 

Finance ......... 26 

Emigration ........ 28 

Qualifications for a Voter ...... 30 

House of Senior Statesmen ...... 32 

Conservation ....... 34 

Railroads . 37 

Corporations . . . . . . . 39 

Taxation . . . . . . . . 41 

Financial Situation . . . . . . . 42 

Proposed Legislation, I • . . . . . 47 

Proposed Legislation, II ..... . 49 

Proposed Legislation, III . . . . . . 51 

Central Bank ........ 53 



Press of 

Mensing-Muchmore & Emme 

Seattle, Washington 



Electric Power 



The manner in which electricity has come into use 
within the last generation approaches the marvelous. 

Besides the many ways it has tended to intricate civ- 
ilization and make domestic requirements more complicated, 
it has opened up questions peculiarly its own, and which are 
but slightly understood by the average citizen. 

Business and domestic necessities are dependent in many 
ways on this force, and many new economic problems arise. 

Electric service permeates nearly every phase of busi- 
ness utility. 

Whether it is financially feasible generally, as a com- 
mercial agent, as yet remains to be proven. 

There is little question that many power plants, street 
railways, telephone and lighting systems are largely stock- 
selling schemes, a large portion of which, considered as an 
institution in relation to a general business harmony, must 
eventually fail. 

Electricity is, primarily, a magnetic force partaking of 
the phenomena of heat and fire, and prima facially a luxury 
and an innovation. 

The country at large may be said to be gridironed with 
electric railways and transmission wires. 

What are the climatic effects of this indiscriminate and 
wholesale transportation of a subdued fire? 

Witness the conflagrations of Boston, Baltimore, Roch- 
ester, N. Y. ; Toronto, Canada; San Francisco and Fort 



Worth, Texas. Hundreds of millions of dollars of waste 
and carnage, all of which is often indirectly and inceptively 
attributable to its agency, and certainly directly augmented 
by its usage. 

The charging of many unsheated wires makes a com- 
bustion of a large quantity of oxygen in the air, causing the 
humidity in the cities and adjacent territory to rise, changing 
the climate, burning out the moisture in the ground, and 
robbing the inhabitants of much of their fresh air supply. 
Through intentional direct contacts and other short cur- 
rents, the sewerage, gas and water mains are inoculated, and 
the water supply decomposed of many of its essential ele- 
ments, which escapes in gaseous form. Through the me- 
dium of this "electrolysis" the water is vitiated, and the iron 
in the pipes is corroded and made short-lived. 

The effects on users of such water is very patent. Many 
people shun its use altogether. 

The increase in ptomaine and mineral poisoning from 
metal leeched canned goods and cooking utensils has been 
enormous. 

When a human body receives a charge of electricity it 
causes a violent or spasmodic contraction of the muscles 
when it enters, and again when it is turned off or leaves, 
the body. It is safe to say that it has a corresponding effect 
on the nerves. With the ground and atmosphere constantly 
inoculated with more or less of an electric charge, the hu- 
man system is also affected. 

Electric stimulation to a well body is a positive injury. 
An electrical charge increases the natural heat of the body 
and other heat, and noticeably aggravates the rays of the 
sun. Heat, when given off, does not vanish altogether, but 
is disseminated throughout the ground and surrounding air, 
and cooled to the temperature of the atmosphere and ether, 
and is there kept in a diffused latent form that is regen- 



erated when brought into contact with other heat, as in 
superheated steam, or the greater heat given off by a soft 
iron stove when the air is electrically heated. "Once heat, 
always heat." 

Electric stimulation increases the effects of drugs. 
There is much use of cheap poisons in some form, in food 
preservation, the effect of which in many foods, tobacco and 
alcoholic beverages is very appreciable. 

Nearly all nerve excitants cause a corresponding con- 
traction of the nerves and corollary of the adjacent mus- 
cles. Nerve contraction and constipation are often identical, 
hence in times of unusual or even any electrical inoculation 
of the country at large, there is much constipation in vogue. 
To this fact is directly due much of the epidemical prev- 
alence of appendicitis, bowel complaint, la grippe, typhoid 
fever and pneumonia. These diseases are partially due to 
constipation of the bowels, consequently the other organs of 
excretion of the body are constantly overtaxed. With the 
drinking water electrically vitiated, the system cannot stand 
the strain. 

Influenza and la grippe seem to have come to this 
country identically with the advent of gas and electric light- 
ing. 

As to plant life, such lightening of the air (heat con- 
sumes oxygen) leaves a surfeit of nitrogen, which causes a 
ranker growth in the early spring, that the more easily suc- 
cumbs to the fiercer heat of midday and summer. 

" One will notice that the seasons are much earlier where 
there is heavy electrical transmission and consequential air 
evaporation. 

Later in the spring, w T hen the effect is counteracted by 
equinoctial changes and spring rains, the early summer is 
noticeably backward. 

Winds come from vacuums in the air, caused by heat 



and electrical action. Artificial electricity, in some degree, 
causes the same effect, hence so many electrical storms, at- 
tendant fogs and accompanying rains that often come in 
the form of a deluge and run off as surface water to the 
detriment of the soil, which it does not permeate, but helps 
to wash away. 

The fact that the top soil is usually dust from previous 
electrical action facilitates this erosion. 

Notice the drowning out of crops by June rains through- 
out the Mississippi Valley and the terrible floods of recent 
years. 

This storm danger is contemporaneous and identical to 
heavy electrical usage. It would stagger belief could the 
above loss be even approximately accurately stated. It is 
difficult to fix this loss on electricity, as it is usually an ac- 
celerating or augmenting influence which, like the effects of 
noxious drugs and immoral habits, is not apparent until the 
injury is done. A decomposing, insidious influence to every- 
thing it comes in contact with, from iron water pipes to 
mental nerve fibre. 

"Two. currents of electricity run in the same direction 
magnetically attract each other." "Run in opposite direc- 
tions they repel." All intervening space in the former is 
inoculated, hence the principle of wireless telegraphy and 
telephonic acoustics in cities. It can easily be seen that it is 
a difficult question to solve in a practical commercial way. 

It can safely be assumed, that its use has been greatly 
overdone, and that except in a few instances it will not be 
economically profitable. Assuming that time will solve this, 
as other questions, will it do so without causing a corre- 
sponding injury to institutions in general? At first blush 
one would say not, especially as there seems to be no dis- 
position to even approach the subject. The question at 
present is likely one of regulation. Some partisans say 



"put all wires under ground." This would make a nearly 
confiscatory expense on electric companies at this time and 
would be difficult to embrace into general legislation ; ] further- 
more, would not be sufficient unless the wires are also insulat- 
ed. Is it possible to insulate all transit wires and use electric- 
ity ? In trolley wires palpably not. All telephone, lighting, as 
well as long-distance power wires, can be insulated, and it 
is possible to see, that electrical companies do not use more 
power than is necessary through any of their system wir- 
ings, and that they stop sending return currents through the 
ground, and the gas, water and sewerage mains, and that all 
hoodlumism of "electric exemplification" and "malicious in- 
timidation" cease entirely. 

It is a notorious fact that many street railways and 
other electric companies are in the hands of promoters, who 
are selling their stocks and bonds to whomsoever they can 
prevail on to buy them, that they use outrageous means, and 
employ a questionable class of people in doing so, that this 
extra power is for the purpose of giving their psychic agents 
more facility for operation. 

This superabundant electrization radiates throughout 
contiguous territory, and, aided by the aforesaid mind-read- 
ing psychics, is used for every purpose, from intimidating 
public servants to finding where a man keeps his valuables. 
The duty of government, unless it sees wise to confiscate 
the power plants (which many people think the only proper 
way to handle this question), is to regulate all wireless sta- 
tions and power plants, compel them to put under ground, 
and thoroughly insulate all main power wires, prohibit any 
two large pow T er lines paralleling each other, and completely 
separate all long-distance phones from the city exchanges. 

The amount of current sent along any given trolley, 
lighting or telephone wire can be limited and regulated. By 
sensible supervision many of the deleterious effects can be 
greatly mitigated. 



Telephones 



An informed contemporary well said : "The telephone, 
notwithstanding its convenience, is indirectly the most im- 
moral of American inventions/' 

Through the medium of the vast number of phones in 
use, the system of radiating many phone wires from a 
central phone in each city block, the placing of the phones 
so that many of them face a common central point, and 
the permitting of untowardly large telephone switch ex- 
changes, which are often connected with heavy power long- 
distance telephone wires, and the large number of wireless 
stations (with outrageous battery connections), and the 
electrization of railway tracks and engines, which, with the 
long-distance telephone and power conduits, are essential 
to serviceable overland wireless telegraphy — the country is 
practically in an electric vacuum of resonant vibration, as 
it were. 

This situation, taken in conjunction with the fact that 
ether is nearly perfectly elastic, by means of telephonic 
diaphramic vibration, practically places any community so 
connected in adjacency with every other part. The condi- 
tions in any such zone is such that every inhabitant's in- 
dividuality, business secrets and even his very thoughts are 
at the option or disposal of any mind reader who cares to 
investigate or invade the same, get information concerning 
his business and property, or inveigle him or his family, 
by suggestion, into doubtful and artificial situations. Hu- 
man beings are proverbially afraid of what they can not see 
or understand. The very fact that any one is under espion- 
age, or at the mercy of an unknown agency, is an assault 
and an invasion of a citizen's guaranteed rights and con- 

10 



stitutional prerogatives. Considering that this practice of 
hypnotism, emanuel movement, absent treatment, mental 
telepathy, or auto suggestion, is at the pleasure of whom 
so ever will, it is a seductive temptation, an incentive for 
scandalous mental eavesdropping, and the use of stimu- 
lating drugs and electric energy, that debilitates any per- 
son's mind and body. The evidences of this soul-destroy- 
ing habit are prominent, and visible everywhere. 

Hypnotism, mesmerism, suggestion, etc., is a general 
practice with nurses, physicians, stenographers and actors, 
who, conscious of the fact that its use makes them person- 
ally spies and eavesdroppers, are either ashamed or unable 
to denounce a practice that one can not easily prove. 

The fact that stimulated thought, somewhat like a 
dream, is evanescent mitigates against its exposure. 

A person can speak audibly through a small pipe for a 
great distance, by regulating the voice sound to such a 
volume as the pipe will convey. A greater or louder voice 
will not be conducted far, on account of the friction from 
contact with the sides of the conduit, and the rebounding 
of the sound waves against the air in the pipe. This ac- 
counts for the apparent phenomena of diaphramic voice 
telephoning. Aided by the sound enhancement of tooth 
enamel and the elasticity of ether, and the magnetic affinity 
that metal filled teeth have for similar teeth nerves, and 
the natural elasticity of nerve fibre as an electric current 
conduit, and the fact that most shoes have iron nails in the 
heels that connect the soles of the feet with the ground, 
and the generally surcharged condition of both the air and 
ground, a breath of sound or speech, propelled by dia- 
phramic expulsion, can, to those accustomed to such means 
of communication, be apprehended at a great distance, 
which is proportionate to the volume of electric current 
conduit used. 

11 



To such persons as practice "prompting suggestion'' 
by breathing speech into a telephone, communication can 
be had anywhere within the radius of telephone influence, 
and corollary wireless power transmission. While a very 
unreliable means of communication, it is possible and much 
practiced, although not recommended. 

It is a common practice for. a judge in a court of equity 
to sit facing the same general direction as his telephone, a 
few feet away. He opens his mouth, and often outside 
and unknown persons control his thought and direct his 
language by "suggestion prompting" and "anticipating/' 
i. e., "put words in his mouth," as it were, by mental tele- 
graping from a distance. By the reverse of "anticipating," 
a person can be hindered in both thought and speech. 
Thought transference being practically automatically simul- 
taneous, a change of idea or a violent muscular control of 
the organs of speech by the mind reader will in a degree 
divert the subject mind, and give this "thought direction" 
more force. Many minds can assist or retard in silent 
chorus with a subject mind, with or without the subject's 
desire or co-operation. 

Every police station in America practices this "thought 
thievery" on any prisoner they desire. Constituting self 
evidently intimidation and duress. 

The country is full of psychics, who either have false 
teeth and can easily put in a set of heavy metalized operat- 
ing teeth or who have their teeth heavily filled with gold or 
platinum fillings, that greatly facilitates this occupation of 
mental surveillance. 

These psychics constitute an army of mental intimi- 
dators, who for fun or fee assault whomever they desire, 
either by reading another's mind and simultaneously think- 
ing with their victim or subject, direct, hinder, or control 
his thoughts, or in the use of nerve stimulating drugs and 

12 



intense application, go "en rapport" With their victim. 

The people are latently terrorized by what they know,, 
fear, anfi don't know of this villianous practice. 

Hypnotism is connection between two or more minds 
by simultaneous mental telegraphy. As between subject 
and practitioner it simply means that the patient subjugates 
his mental faculties to the will of the practitioner, namely, 
does not control his own thoughts, but lets another do his 
thinking for him. It is a brutal practice of mind paralyza- 
tion, and is properly termed a "Black Art." 




13 



Letter to Hon. Eugene Tausick 



Seattle, Wash. 
Walla Walla, Wash., Sept. 14, 1909. 
Hon. Eugene Tausick, 

Mayor of Walla Walla. 
Dear Sir: 

Under separate cover, I send you a copy of "Allen's 
Political Essays." You will find therein an article on 
"Electric Power." 

I noticed a newspaper article recently that said that 
certain people were contemplating the erection of a wireless 
station on some building in this city. Of course, you will 
recognize that to transmit wireless messages requires a 
heavy battery, and the development of enormous magnetic 
electric heat ; that this heat radiates for miles on each side 
of the course it takes through the country, which, as you 
are aware, already has more natural heat than is necessary 
for agricultural pursuits. The soil in this valley is getting 
dryer each year, and there never was any too much moisture/ 
To electrically absorb any part of what there now is would 
be a crime against the community. 

Heated air induces the replacement of such air by the 
colder and damper air from the mountains, consequently 
when the sections west and north of town are being baked 
up, the foothill region south and east of Walla Walla get 
the benefit of all moisture contained in the damp, cold air 
from the mountains, and seem to have larger crops. 

In many places the straw was heavy, but the heads of 
grain did not fill, and the yield was correspondingly light. 
This uneven distribution of the dew would be a considera- 
tion were it not for the fact that the mountains are also 

14 



becoming dryer each year, and the supply of moisture be- 
coming less. 

If it keeps changing the next, as it has the last ten 
years, it is safe to predict that dry farming will be largely 
a question of past history in this valley. 

It is a subject of much importance, and a "stitch in 
time saves nine." The reported business of wireless com- 
panies is probably an exaggeration. Who uses it? These 
companies are evidently backed by foreign propaganda in- 
terests, and they evidently count on compelling the state 
or general government to buy these wireless stations to 
get rid of them. 

The representation of the business done by wireless 
companies is to excuse the use of unwarranted quantities 
of electrical energy, that stock-selling power plants have a 
surplus of. 

The cities in the Middle West and the Pacific Coast 
states are virtually being baked up with excessive electrical 
heat, and their inhabitants are practically "Electrical recon- 
centrados" at this time. The mistake has been to consider, 
or treat of this innovation, as a vested right. No property 
right can accrue to any one that palpably injures the com- 
munity at large. 

Unusual or injurious use of electrical energy within 
the city is a proper question of regulation by your City 
Council. 

The way to see that this injury does not become an 
irreparable fact, is to see that it gets no foothold, and to 
compel electric companies to behave in their use of mis- 
chievous quantities of energy. 

Very respectfully, 

John B. Allen, Jr. 



15 



Letter to Thomas H. Brents, Esq. 



Walla Walla, Wash., Feb. 13, 1910. 
Thomas H. Brents, Esq., 

Walla Walla, Washington. 
Dear Mr. Brents: 

I complained of the injury that the city park wireless 
plant, and the Walla Walla Electric Company (especially 
the second street line, that runs south into Oregon) were 
doing the community at large, and our premises and locality 
in particular. 

I also sent copies of my article on "Electric Power'' to 
every mayor, common council and health officer of large 
cities from Los Angeles to Victoria, B. C, thence east via 
Montana and Oregon Short Line points to Omaha, Chicago, 
Albany, New York City, Washington, D. C, and cities en 
route. They are apt to attract attention somewhere. 

A corporation is an artificial individual, authorized by 
law to act as a single person. It should have no more rights, 
leniencies, or liberties than any one individual of which 
it is composed. It is amenable to law the same as an indi- 
vidual. 

Recently the U. S. Attorney General's office has accept- 
ed and acted on this view, and instead of proving conspir- 
acies against crafty individuals, has proceeded directly 
against the corporation as an individual. While the constitu- 
tion provides that suits between residents of different states 
shall be a United States Court affair, it seems to me that 
for a criminal breach of the peace, a corporation or rather 
that part of it within any court's jurisdiction, is as amenable 
to regulation and correction as though it were a citizen res- 
ident. How much more should artificial citizens and espe- 

16 



daily the plant and other property, that is affixed to the 
surface of the public roads and highways, and therefore a 
fixture of real estate, that the community has an interest in, 
be liable to local laws and regulations ? 

The Washington Power Company, General Electric, 
Walla Walla Valley Traction Company, Bond and Sales 
Company (or under any other name) is an artificial per- 
son amenable to the laws and penalties wherever its prop- 
erty is located, and is liable to answer to local courts, if 
the procedure ignores the individuals, and is brought di- 
rectly against the company as an individual. This 
electric subject is a simple one if approached rightly. 
An electric wire is a conduit, capable of transmitting 
so much energy and no more, like a water pipe of 
given dimensions. (Under heavy pressure this pipe will 
carry more, than under normal pressure.) In any transpor- 
tation there is more or less evaporation by convection. This 
evaporation is heat escaping, exactly as it radiates from a 
stove. Air, especially dry air, is a non-conductor, but a hot 
live wire soon burns out the oxygen near these wires and 
the close proximity is nearly a perfect vacuum, which like 
the effect of heat grows less the further away it gets from 
its source, unless there is magnetic attraction and stoppage 
of penertation of the light or ether rays or waves in which 
case the surface will glow with intense latent heat as when 
the rays of the sun are stopped by a tin or glass roof, (at a 
proper angle of vision, they make a perfect blaze of latent 
heat.) Heat, that is not, or does not follow light rays, will 
accumulate in the same manner, when it strikes an attrac- 
tion object like any metal, to some degree. Suppose that 
the ground between Spofford Station and the East Walla 
Walla car line is heavily surcharged (electric latent heat 
follows the ether in the ground, especially where the ground 
is damp along creek bottoms, more readily and steadily, than 

17 



even through damp air which is easily spread by light gusts 
of wind, the same as a lady would freshen the air with a 
fan), it can not arise, except as it permeates the dry air 
(and often the snow covering the ground) above the estab- 
lished and magnetically attracted "closed short current." 

"Positive electricity is attracted, — by a hot steel range, 
zinc and iron wash tubs, chimney extensions, water pipes, 
storage water tanks, telephone, plated silver, (especially 
where soft iron and quick silver is used) magnetic and pol- 
ished steel key board of a piano, spring lounges and beds, 
even the metal mechanism of a clock, sewing machines and 
chandeliers, help this attraction, and very forcibly attracted 
by a heated zinc covered iron furnace, and storage batteries 
of a "call beir' or even door bell service, that is strung so 
that it is adjacent to a furnace and water piping. 

Electric lighting wires augment all the above enumer- 
ated kinds of magnetic attractions for depredating and need- 
less electric transmission, via the ground and overhead wires 
as a conduit. "A drop of water will wear away a stone." 
This electric contact is not especially apparent momentarily, 
somewhat like a small stove in a large hall; close the 
doors and windows tightly and it would soon make 
the room very unpleasant, if kept at high heat, 
but let it continue for hours, days and even weeks without 
intermission and there is a great amount of latent heat 
throughout the ground, everywhere adjacent to this trans- 
mission. It arises only by convection. This action is brought 
about by the air, next the ground contact, being vitiated of 
its oxygen and the light air or parti-gaseous air, arising and 
being replaced by heavier and colder air. Then when a wind 
starts (and this evaporation enduces winds) this latent heat 
by action of friction of the air in motion, soon becomes a 
moisture absorbing dry wind. In pioneer years hereabouts 
two or three "chinooks" a winter was a rule, and now there 

18 



is an artificial chinook every time there is latent heat enough 
in the ground to cause preceptible evaporation or warmth, 
which is usually about once every week or ten days. 

After the ground is surcharged the heat and other 
metal attractions in a citizens' residence act, as ventilators, 
for the escape of the latent heat adjacent, and as an attraction 
for a direct short current from the place of supply of this 
assaulting agency, similar to the action of a radiating fur- 
nace with many piped heat conduits. 

Close the ventilator and damper of any of them, and in 
a short time the heat will burst out of any given one left 
open with frightful force. Put a sick patient, or any man in 
such a room, close all windows and doors, then throw on all 
the coal the furnace will stand, keep all other furnace pipes 
and ventilators closed, and it will soon ruin his health, if not 
asphyxiate him. It surely would, if there was an electric 
light and call bell in the room. This is the w r ay electric com- 
panies act, when the wires are hot between Pendleton and 
Dayton, they turn off other energy conduits, that use, and 
waste in evaporation, much power, except those from large 
power stations at Spokane, Tukannon, Shoshone Falls, Ore- 
gon Falls, Walla Walla River, etc., and send all the power 
the wires, railroad tracks and street car tracks will stand 
and as much as they can force into them (or as much as 
they have) and time does the rest. 

These live and hot wires burn out the air immediately 
surrounding them, and, as the force of the heat radiation is 
from the wire, as a center, surrounding space becomes more 
or less of a vacuum (in which there is little air or friction 
resistance) for the transmission of enormous quantities of 
useless and unconfined, evaporating electric energy, which 
is a source of danger to the health and domestic peace of 
the community at large. 

Very respectfully, 

John B. Allen, Jr. 

19 



Letter to Hon. Leslie M. Shaw 



Seattle, Washington, Nov. 19th, 1905. 
Hon. Leslie M. Shaw, 

Secretary of the Treasury, Washington, D. C. 
Dear Sir: 

In today's dispatches, I read with much interest the 
account of your actions in refusing to deposit with, or loan 
to, the New York banks at this time. 

The notion that banks and railroads are ipse facto a 
vital and fundamental interdependable part of our com- 
munity organization upon which government rests, that 
laws, customs, business methods and precedents are, and 
should be, built on such a recognition of them, as primary 
indispensables, that their welfare is vital and necessary to 
that of government, and that they are not like other busi- 
ness ventures, is too common and needs some incident to 
arise so that it can be unmistakably refuted as an enduring 
precedent for all time. I hold that every coalition of or 
between banks, from a secret understanding, which is prima 
facially a conspiracy, to that of the clearing house (nation- 
ally, provincially or locally) is illegal, and without their 
charter, and an immoral use of debit and credit as capital. 
Banks, which are at best but refined pawnbrokers, should 
be compelled to stand on their own resources and individu- 
alities or shut up shop. 

Financial organizations "for mutual protection, etc., 
etc.," are self-evidently in restraint of trade. They are in- 
animate individuals with no moral responsibilities or crimi- 
nal limitations. I again wish to congratulate you on your 
position as the leading American Banker. I remain, 
Very respectfully, 

John B. Allen, Jr. 

20 



Letter to Hon. James R. Garfield 



Seattle, Wash., Nov. 23rd, 1905. 
James R. Garfield, Esq., 

Commissioner of Labor and Commerce, 
Washington, D. C. 
Dear Sir: 

I noticed the published view, purporting to be the rail- 
way employes' side of the "Rate Regulation" question. 

It is a well written class presentation, considering the 

evident desire to remain non-partisan in politics, and the 

fact that they are mechanics dependent on their positions 

for sustenance, that they are conscious of being under a 

constant critical system of espionage, and that many of them 

know they are liable to discharge and black list for "non- 
conformity," if they become politically active. They view 

the aspect or possibility of having to learn a new trade un- 
der impossible conditions with much natural apprehension. 
This condition make many men chary of expressing their 
views, when it is nearly sure to lead to professional martyr- 
dom. The chances are pretty much in favor of such a re- 
port being cowed or inspired making it valueless as a pivot, 
and useful only to show ameniability, as a national organiza- 
tion, for which there is no excuse in the aggregate, except as a 
counterbalance to the many existing unlawful organizations 
of employers. To my mind it is puerile, and does not touch 
the gist of the question, which is rate equilibrium, organ- 
ization limitation and social disintegration. 

To start with what are the functions of railways ? Are 
they de facto shutes to handle long hauls, as between sea 
port terminals, and already established trade centers, re- 
garding the intermediary country as they see fit, or are they 

21 



advanced, or modernized highways owing a first duty to 
the country they traverse, and by which they are nurtured 
and maintained throughout sluggish times? Is not the as- 
sumption that railways are supported by long hauls debatable 
and unstable? 

Is not the Pennsylvania system a better model to reason 
from than the Pacific lines? 

Is it not the policy of some railways and their commu- 
nity of interest associations, traffic arrangements, etc., to 
cultivate the use of extraneous commodities, or products in 
the several localities, so as to build up a reciprocal trade for 
their tonnage benefit, as per example, hauling live stock East 
and beef, pork, hams, etc., West? 

How long can railways, as a class, endure with a short- 
age of circulating money? 

Does not their hoarding of money as reserve operating 
funds tend per se to create a shortage of the medium of 
exchange ? 

Is it not a fact that they are suspicious of one another 
in coalition ? That commercial duels are dangerous to busi- 
ness non-partisans, that reserve funds are never large and 
safe enough ? Do not snow balls always break on assuming 
untoward proportions? 

Are they (and similar organizations) not self evidently 
momentarily dependent on government issue for an ade- 
quate currency? Is this condition not augmented many 
fold, when they add manipulations, banking, etc., to their 
functionary perquisites ? 

Should not the positions be reversed that have required 
government to take the initiative and laboriously prove self 
evident conditions, in each and every individual case, prac- 
tically granting to the wards and creatures of sovereignty, 
the perogatives of defense, demurrer, and the benefits of 
stays and appeals? 

22 



Is not any condition a false one that allows an inani- 
mate individual the benefits of criminal procedure in a pal- 
pable civil action? 

How long can any institution or private business en- 
dure, if their affairs, are at the unpreventable espionage of 
strangers, considered in every aspect from the professional 
blackmailer to that of an honorable business rival? 

Is this not partly the result of large companies making 
a practice of keeping a private regime for the enforcement 
of their own law? 

To what an extent is the last permissible under a re- 
publican form of government? 

Does not this instance necessitate a stooping to ille- 
gitimacy, by the class portion of the business for self pres- 
ervation ? 

Are they not in the position of the horseman, or sports- 
man, who has to learn to cheat or graft to protect them- 
selves from those who do? 

How long is it expected that human nature, in its ac- 
cepted weaknesses, will refrain from taking advantage, in 
some degree, by such necessitated knowledge, of their busi- 
ness contemporaries and the well to do middle classes of 
the country? "Who, when once destroyed can never be 
supplied/' 

These are a few suggestions, that enter my mind at 
this time, and they are not intended to be either inquisitorial 
or impertinent. If there is a solution outside of the natural 
laws of trade and the course of "Father Time," I believe 
it lies in government license, exacting that every created as- 
sociation, be subsidiary to government in its affairs, and 
segregated to corporate individualism, and on occasions, if 
need be, required to show good faith unequivocally. 

"There is Safety in Numbers." And in just such pro- 
portion, as they are segregated, so are they safe politically 
and commercially. This with rate equilibrium, organiza- 
tion limitation and social disintegration are apt to be the 
panacea. 

Very truly, 

John B. Allen, Jr. 

Seattle, Wash. 

23 



Secret Societies. 



Of late years it has been the custom for labor and some 
ecclesiastical organizations to invade and, by self-constitu- 
tion and arbitrary selection of their henchmen as leaders, 
to dominate many so-called charitable and benevolent secret 
societies. 

Clothed under an idiotic stoicism or knownothing- 
ism, they constitute an unwieldy and ineffectual body of 
men, with an adopted and intangible grievance, that is a 
menace to the general welfare and free institutions, and a 
creator of class distinctions and hatred, antagonistical and 
inimical to a democracy. 

Such organizations, in the hands of the hirelings of 
designing men, are positive agents for the promulgation 
of monarchial doctrine, especially when under the fraternal 
guise of the brotherhood of man. 

It is a common custom for "captains of industry" and 
so-called "community of interest affiliations" to employ 
men of considerable fraternal standing as spell-binders, 
political ward heelers and lobbyists ; these men and their 
masters make a point of using their enigimatical social 
standing and fraternal rating for purposes of "highering," 
mystifying and intimidating citizens, public servants, and 
communities. Such conduct soon leads to differences, 
hatreds and intrigues, founded often entirely on an ambigu- 
ous, intangible and phantom differentiation, leading to ani- 
mosities and loggerheadisms, for which there is no direct 
cure. 

Should a present existing invidious association of so- 
called Northern Democrats, all of whom are self-constituted 
fraternal aristocrats, insidiously get the reins of general 

24 



government into their hands, it would be the end of our 
democratic nationality and American Free Institutions. 
When they properly align their fraternal cable, through the 
medium of some trivial general disturbance, martial law 
would be invoked, and it would never be vacated. 

A simple step from a democracy to a dictatorship, and 
eventually a plutocratic monarchy. This insidious cancer- 
ous cable must be shortly taken in hand, and all combina- 
tions of individuals and interests of political protends segre- 
gated by a strong democratic central authority. And every 
organization of national scope, that is not founded on open 
constitutional principles, must be subjected to the central 
control and espionage of general government. 

Under the indefinite guise of fraternal business any 
plan can be indirectly launched into existence, and any 
conspiracy hatched and promulgated, especially when ad- 
vanced and abetted by ambiguous insinuations and innu- 
endo, cowardly and dramatically vociferated into the ears, 
senses or acousticons of an unsuspecting public. 



25 



mance 



The present financial situation can be briefly and super- 
ficially stated as follows : There is about two and one-fourth 
billions of dollars in money in the United States. The 
banking associations owe depositors between fifteen and 
twenty billions of dollars. 

Should there be any considerable concerted movement 
of withdrawal of such deposits, how can the banks meet it? 

Central financial associations who also have large 
hoarded cash reserves distrust one another. 

A certain banking concern calls in its loans, converts 
its paper securities into cash ; another has to do likewise to 
protect itself. The result is a money famine, even in times 
of greatest plenty and domestic prosperity. 

Consider that actual cash money is a small percentage 
of the values that are exchanged in the course of business 
transactions. Private individuals soon learn that certain 
banks are calling loans and advertising "easy money,'' and 
they try to do likewise. All of which results in a scramble 
to get possession of actual cash money. 

Many people do not trust banking concerns at such 
times and they withdraw their money and deposit it in 
safety deposit vaults or otherwise hoard it. Affairs financial 
are soon in a confused jumble, especially mystifying to the 
people who depend on an ample supply of money for their 
every-day needs. 

Many of them get frightened and try to withdraw their 
bank deposits. 

Those in the "East" are told that "the West is trying 
to deplete the 'East' of its gold bullion," etc. ; in the "West" 
they are told "we are unable to get our reserves from East- 

26 



ern banks." Consequently the depositor gets a limited 
amount of "emergency currency," which is simply a form 
of private fiat money endorsed by corporate individuals of 
doubtful responsibility and has not even the sanction of 
General Government. 

Large banking concerns having branches or corre- 
spondents, etc., through the medium of the clearing house, 
checks, drafts, bills of exchange and other evidences of 
money, do a very large volume of business with a very 
small margin in cash to pay, so that the large part of the 
business of the country rests on credit, which is much dis- 
trusted, and largely destroyed at the present time. The 
present uncertain financial situation is largely, if not en- 
tirely, due to the fact that there is an inadequate supply of 
money available for business purposes and bank reserves, 
it is evident that banking, as a business, has been largely 
overdone. 

To bring about a harmonic relation, and to force the 
paying out of actual money, instead of an endless chain of 
bank credits (which is the real bugbear) the following bill 
is submitted. The aim is to compel every financial associa- 
tion to stand on its own individuality and financial strength 
and to be amenable to the General Government directly, to 
cease depositing with other banking concerns in industrial 
centers, and to give the Secretary of the Treasury the same 
discretion that all private and national banks now assume of 
paying out such forms of money as the condition of the 
times and treasury warrant. With actual money only a 
tithe of the deposits, subject to demand, it stands to reason 
that one can not pay what one has not got. It is also pro- 
posed to allowed banks the option of holding their cash 
reserves or of depositing them with the General Govern- 
ment. 

The bill also allows any person, in lieu of hiding or 
hoarding his money, in a sock or safety deposit box, to 
deposit directly with the United States Treasurer, and pro- 
vides that anyone can buy a low rate bond with such de- 
posits. 

27 



Emigration 



An enormous emigration of an extremely high class 
of educated foreigners has been brought to this country in 
recent years. These people were originally intended to be 
"birds of passage/' sojourning here temporarily, to ex- 
change a one time only used article (their time and labor) 
for American gold. 

There has been a secreted object in the presence here 
of such high cultured and notably well-behaved aggrega- 
tions. 

First to exemplify and dignify the prestige of their 
native land, and secondly to mutually co-operate in investi- 
gating the unsettled effects of labor-saving machinery, and 
the scope of the same, and especially electricity, on modern 
institutions. 

This investigation has been so becalmed and quiescent- 
ly prolonged that large numbers of these people will per- 
manently remain in the United States and prominently 
participate in its ultimate destiny. 

It is high time that such importations be restricted 
more rigidly. Any foreigner who does not speak the Eng- 
lish language, and who is not conversant with the theory 
%i a democracy, and the constitutional distinctions between 
a republic and a monarchy, should not be allowed to enter 
American soil. The right of suffrage should not be given 
any alien, other than a freeholder. 

By wise police regulation they should not be allowed 
to congest in communities. The average foreigner is so im- 
pregnated with class necessities and distinctions, that he is 
a very unreliable quantity where national differences, or 
even the political, social or fraternal prestige of some erst- 

28 



while foreign born citizen is involved. They are asked to 
give aristocracy obeisance to any political or mercantile 
leader. There are many individual master mechanics 
among them. While inherently in favor of personal liberty, 
they realize their lack of knowledge of governmental ma- 
chinery and are practically political subjects of some petty 
boss. 

After a reasonable opportunity for acclimatization and 
for outgrowing their natural deference to social power, 
they should compare favorably with the better class of 
American-bred citizens, who are taught that there should 
be no class distinction of birth or wealth in this country, 
and that there is an aristocracy of capacity and merit, to 
which every citizen has an inalienable right to aspire. On 
account of colonization, their identity and actions are kept 
in restraint, by their connection with their national secret 
organizations, that are usually indelibly linked w T ith 
monarchial propagandas in some form. 

Such bodies of men must be so separated or domiciled, 
as to allow their natural desire for liberty and assimilation 
to assert itself, and not allowed to congregate into com- 
munities that will ultimately prove a menace to govern- 
ment. 

Xo class are more dependent on legal protection and 
trustful of government institutions to safeguard their sub- 
stances and interests, than these liberty craving people. 

Once give an educated foreigner to understand that 
the American government considers him a free individual, 
and will protect him in his assumption of that position, and 
the situation is changed completely. Tnstead of a vassal to 
indefinite authority, they will be found a desirable addition 
to the blood of our future freeholders. 



29 



Qualifications for a Voter 



There should be a national law passed limiting the 
importation of alien persons to those of good moral char- 
acter, who can read and write the English language, or who 
land under bond of support, and as wards of property 
owning relatives, who are already citizens of the United 
States. 

No alien should be allowed to become a citizen, unless 
the owner of at least five hundred ($500.00) dollars' worth 
of realty. 

Every citizen, to become a voter, should be required to 
pass a written examination under the direction of the Secre- 
tary of War, (and held by the United States Army officers, 
appointed by him) at intervals of twice a year at the county 
seat of every county in the United States, at such times as 
they shall designate by proper official notice. Every citizen 
shall be allowed an opportunity of entering any such exami- 
nation, held after five years from the failure of such citizen 
to pass a grading of at least seventy per cent on his last 
examination. 

All citizens w T ho successfully pass a seventy (70%) per 
cent grading on the following subjects, shall be given a 
certificate entitling them to the privilege of a voter, except- 
ing such as are disqualified by procedure of law, in which 
case any such disqualified citizen may take a regular exami- 
nation and the usual oath of allegiance of a United States 
soldier in the regular army, before such disqualified citizen 
can again become a voter. This examination will be on the 
following subjects, and no other: 

First — What is the meaning of civil liberty? 

30 



Second — Repeat and comment on the preamble of the 
Constitution of the United States. 

Third — How and by whom were Presidents and Vice- 
Presidents originally elected? 

Fourth — What is meant by a bill of attainder and cor- 
ruption of blood ? 

Fifth — What are letters of marque? What is an em- 
bargo ? 

Sixth — What are the requisites of a non-partisan judi- 
ciary ? 

Seventh — Wherein does a statesman differ from a par- 
tisan, or sectionalist politician? 

Eighth — What are the fundamental reasons for and 
characteristics of "Habeas Corpus"? 

Ninth — Why should General Government coin all 
money and regulate the value thereof? 

Tenth — Why is the power and right of taxation an 
indispensable function of Government? 




31 



House of a Senior Statesman 



The present status of congress has been unsatisfactory 
for some time ; mainly because its members, with few excep- 
tions, posing as statesmen, are politicians scanning and 
amending every measure framed on broad lines of national 
equity for sectional or local advantage. 

Congress needs a controlling, law-making body of 
"Senior Statesmen" which shall review and pass on every 
act of Congress, and whose dissent shall be an absolute veto 
of every measure passed by Congress that they do not con- 
cur in. 

This House of Senior Statesmen should be composed 
of members whose tenure of office is during good behavior, 
at a salary of ten thousand dollars a year ; one member to be 
appointed 'from each United States Circuit Judgeship District 
by the Governor or Governors of the state or states in which 
the Circuit Court is located. Such appointment to be ratified 
by the Senate and President of the United States, who shall 
have power to remove the occupant at his discretion. No 
person excepting one so appointed shall be permitted to 
qualify. Any act of Congress concurred in by such House 
of Senior Statesmen, chall go to the President for his ap- 
proval or veto. In case of veto by the President it shall be 
returned to the Congress, who shall have final action on 
the measure as at the present time. This House of Senior 
Statesmen shall meet in the legislative hall of any state 
they may choose at the time of their last adjournment. The 
first meeting of such House of Senior Statesmen shall be 
at the capitol of a state that the President of the United 
States shall designate. The officers of said House of Senior 
Statesmen shall consist of a Sergeant at Arms, Secretary, 

32 



Postmaster, Reading Clerk, Engrossing Clerk and Chaplain, 
with such assistants as the House of Senior Statesmen shall 
consider necessary for the facile transaction of their busi- 
ness. 

Such House of Senior Statesmen shall have no power 
of originating any bill or amending any measure passed by 
the Congress, but can be turned into a commission for law 
revision and investigating purposes at the command of the 
President of the United States. Such action shall be advis- 
ory only. 




33 



Conservation 



Conservation of natural resources is a very alluring 
subject, and sounds attractive to an inexperienced person. 
One must consider that our country is new, that its land 
is raw and immature, that it takes years of cultivation and 
fertilization to bring, even the meadow lands, up to a 
mellow state of cultivation. 

The alkali and potash in the Western lands needs loam- 
ing, or an admixture of vegetation, to bring them up to a 
standard of wholesome productiveness. 

Crops from new land are usually rank in nitrate prop- 
erties, and should be used only as a part of a food diet. 

Reforesting and protecting the plant life of every de- 
scription, along all watersheds of the mountains, should be 
a government care. 

Storage of waters, except as it is aided naturally by 
bushes, trees, and other vegetation, should be done cautious- 
ly, for, besides the waste of money, more harm and danger 
to low lands is apt to occur than benefit. 

Should ambitious public officials occupy their time in 
propagating and introducing suitable plant life for reforest- 
ing the used timber lands, etc., and evolving means of per- 
petuating moisture retaining vegetation, instead of 
haranguing unsophisticated audiences at the government's 
expense, more permanent public good would ensue. 

If they would waste less time in extolling the future 
fulcrum advantage of questionable electric trusts, that have 
made American citizens espionaged "reconcentrados," and 
devote themselves to mitigating the damage that transmit- 
ted electric heat throughout the country is doing to all vegeta- 
tion, and especially to the natural storage supply of moisture 

34 



in mountain regions of moderate elevation, they would earn 
the gratitude of man}^ prudent and providential persons, 
who can see but one outcome for this artificial evaporation 
of moisture at a season of the year when it should be con- 
served. 

This artificial heat counteracts somewhat the tendency 
to, and effects of, frosts that kill insects, and makes plant 
life more vigorous, and it increases the incubation of insect 
life, that is rapidly infecting and ruining the prospects of 
successful fruit raising in this country. 

There is plenty of land that will grow fruit trees, but 
most of it is so inoculated with bug and insect life that 
horticulture is yearly becoming more difficult and uncertain, 
and often a discouraging and unprofitable employment. 

' Large irrigation schemes are an experiment. Running 
water, where there is much slope to the ground, washes 
light soil, and unless the irrigated tract is in grass to hold 
the soil from washing, the agriculturist has an unsolvable 
problem on hand. 

To keep the water at the surface of the ground is an 
all-important requirement, which, if not done, obviates the 
benefits of irrigation. 

An irrigated farm requires constant attention. Level- 
ing the ground, and opening new ditches each year, is an 
additional expense, and some unexpected contingency is 
always occurring. 

Shortage of water at the needed season is usually a 
condition. 

That farms on such lands are liable to deluge and dam- 
age from cloudbursts, floods and breakage of dams in stor- 
age reservoirs, is a consideration. 

The products of raw land and irrigation are rank and 
inferior in quality, and such land, unless of a loam char- 
acter, is incapable of sustaining a- tree of mature growth. 

35 



Young trees grow luxuriantly, until six or eight years of 
age, then wither and die. 

Where are the timber cultures planted under govern- 
ment paternity for the afforestation of the arid lands ? 

Few of them attained growth enough to make fence 
posts. 

Just at the time that, an orchard should be indefinitely 
valuable, it commences to waste away, and the owner has 
worse than raw land on his hands. 

The country around any old settled community, that 
depends on irrigation, abounds with worn-out potato and 
alfalfa lands. These light lands have a limit of productive- 
ness, and the fictional price that such lands are held at is 
preposterous, when one considers its productive strength, 
and the overwhelming amount of labor required. Appro- 
priations for large storage reservoirs in flood-infected lo- 
calities are worse than wasted, as they will constitute an 
additional danger to life and property. 

No storage reservoir like shrubs, underbrush and 
grasses in the mountains, which should never be allowed 
to be grazed closely. 

No protection like a competent "Forest Rangery" 
that diligently prevents and puts out forest fires. 

Appropriations for the cheap distribution of seeds and 
plants, suitable for use in reforesting the mountains, would 
be a perpetual benefit. 

Unproven cures for preventable injuries are usually 
fallacious. 



36 



Railroads 



The multiplicity of railways, the immense capital in- 
volved, the vast number of men employed, and the intimate 
association of its affairs with that of the general public, 
make it a semi-public question. 

Are these railway associations to be the means of 
making "railroad magnates" Roman tax gatherers? or are 
they simply citizens amenable to general sovereignty? 

Every association of railways in pooling or traffic ar- 
rangement, savors of an ultimate monopoly, that would be 
difficult to hold within bounds and gives private persons, 
who often charge all the traffic will bear, altogether too 
much power and influence over the destinies of individuals 
and communities. Every railway should be compelled to 
compete with its rivals, and to do business, just as any other 
individual, subject only to legitimate restrictions. 

If need be, let the United States government establish 
a central tariff clearing house auditing department, to which 
all inter-railway bills of lading shall be sent and which shall 
determine what percentage of the freight or passenger 
charge each participating railway shall be entitled to, out 
of the total amount originally received. To somewhat cur- 
tail the influence of any individual, require each stockholder 
to personally vote his stock, or to lose its suffrage power, 
and prohibit the delegating of proxies to any special person. 
Prohibit the amalgamation of organizations that involve over 
one railway system. "Sympathetic strikes," as well as "Com- 
munity of Interest" monopolies are indefensible from any 
stand point, and are a menace to business, domestic and 
political tranquility. 

37 



They place altogether too much power for destruction 
into the hands of ambitious individuals and are a bugabear 
by which, scheming men tyrantically "higher" ordinary citi- 
zens, who little understand the nature, depth, scope or limi- 
tations of such organizations especially when backed by the 
questionable representations of a partisan press. 




38 



Corporations 



A corporation is an artificial individual, authorized by 
law to act, as a single person. 

It should have a birth and a death or rather a begin- 
ning and ending. If a corporation is organized for fifty 
years, it should be required to dissolve and wind up its af- 
fairs absolutely at the expiration of its life tenure. 

Its holdings should be compulsorily divided, and its ex- 
istence terminated at the expiration of its charter. No as- 
sociation should be allowed to incorporate, until, they have 
the approval of some authorized person, who should rigidly 
investigate its resources, object and other pretension. 

The purposes and functions should be specifically, in- 
stead of generally and indefinitely stated in its application, 
for the privilege of incorporation. 

Its scope and limitations should be positively deter- 
mined before it comes into existence. To limit the amount 
of business, or eventual size of the holdings of such asso- 
ciations, would be a curtailment, of individual incentive and 
the rewards of personal effort, that can be abundantly safe 
guarded in many other ways, especially if the right of com- 
petition is kept open, and monopolies that indicate commer- 
cial conspiracies are discountenanced and unapproved. 

Except to forward quasi public undertakings plainly 
beyond the capacity of individual endeavor, gigantic con- 
cerns, on a scale, palpably intended to outrival individuals 
and small firms, by the force of capital, and whose functions 
are to consume no commercial commodities, but the arterial 
blood of commerce, i. e., the money medium of exchange, 
should not be permitted to organize. 

The object of any supervising authority should be to 

39 



discourage incorporations that supplant individual and firm 
establishments, whose personalities are inseparably associ- 
ated with their assets, business and vocations. 

The business or methods of every incorporation should 
be freely open to the inspection of government authority, 
and of any other sufficiently interested person. Instead of 
a more general and wider latitude, they should have less 
privilege than an individual. A substantial ad valorem tax 
of its capital stock is recommended on all incorporations, 
as somewhat of a set off for their non-supporting inanimate, 
helpless irresponsibility, and their mute defensive advantage. 

No transferment of property from a corporation to a 
corporation, should be permitted, unless specifically approved 
(Like the granting of a building permit) by civil or gov- 
ernmental authority, and never allowed where one incor- 
poration, becomes sole owner of another such company. 

Every corporation, that operates or does business in 
more than one state, should be required, to have United 
States government license, and to organize in and to be- 
come a citizen of every state, in which it operates or does 
business, with a duly accredited and responsible agent, who 
should have absolute authority to commit, and answer for 
the corporation in every respect as though it were a private 
citizen, and for purposes of suits at law, should be subject 
and amendable to State courts, as any other citizen of the 
State. 

The rule concerning perpetuities in the United States 
has been to discountenance succession by entail. 

If a person should not be allowed by law, to devise his 
estate to the eldest in the line of descent, it certainly follows 
that he should not be permitted to will it to an artificial 
individual for the same purpose of keeping it intact. To 
prevent conflicting laws on this subject, legislation of a gen- 
eral nature should be of a national character. A simpli- 
fication of the methods of government and the laws, is the 
urgent need of this nation at the present time. 

40 



Taxation 



The immense scope, of present national expenditures, 
and the cost of the many extensive public improvements un- 
der contemplation, and the fact of the almost hopeless in- 
debtedness of cities, states and the Federal Government, as 
well as the debts of corporations and individuals, and fur- 
ther to provide an ample currency for the ultimate redemp- 
tion of such certificates, make it necessary for the General 
Government to disburse large sums of money in the nature 
of appropriations for internal domestic improvements of an 
enduring and national character. 

To equalize and safeguard this expenditure, an equi- 
table semi-direct tax, similar to the Spanish war tax, is 
necessary. This tax must be adequate to meet national ex- 
penditures as they occur, and must be nearly simultaneous, 
with the appropriations and distributions. 

No appropriations should be made that can not thusly 
be met, and the object should be to retire evidences of civic 
indebtedness, instead of creating them for posterity to meet 
or for the national government to later founder on. 

A large gold reserve is an absolute necessity. It has 
been said that "the American people will not stand direct 
taxation." It seems to me that this was abundantly refuted 
by the Spanish war tax. It may be contended that the lat- 
ter was not direct, but rather specific taxation. Some of 
the tests for national appropriations for public improve- 
ments should be— are they feasible, practical, permanent and 
well distributed? 



41 



Financial Situation and A Proposed 

Remedy 



The present system, of allowing private, state, and 
national banks, taken in conjunction with the general gov- 
ernment's plan of revenue collection and money disburse- 
ment, complicated by the vast certificate indebtedness of 
cities, states and federal government, the aforesaid being 
augmented by individual and corporation issues of cheques, 
stocks, bonds and mortgages to an amount ridiculously 
many times the total amount of actual money in existence, 
has caused a hetrogeneous financial jumble, and has brought 
on a complex and intricate monetary condition. 

Large corporations find it convenient to create enor- 
mous reserve and sinking funds, (that eliminates a large 
amount of money from general available circulation) to 
carry them over times of depression and stringency, and to 
protect their stock and certificate values. 

The amount of these reserves nearly, if not quite, takes 
up all the available money of every description, and it is 
safe to say, that were it not for the large periodical expen- 
ditures of the federal government, and the disbursements 
of cities and state governments (which they very often have 
to issue bonds to procure money for) there would be little 
actual money, now in circulation in the United States of 
America. 

Gold is nearly entirely out of circulation altogether, 
except for show purposes and to cause the federal officials 
to part with immense amounts of virgin gold bullion, under 
the guise of keeping every kind of money at a parity. The 
fact that U. S. mints will coin pure gold bars of a greater 

42 



fineness than the standard gold coin, puts a premium on 
hoarding the same. Actual money is a very small part of 
business balances. 

A banker, who deals strictly in money percentages, sees 
his advantage and converts, as much of his paper securities, 
into actual cash, as possible, calls his loans, holds his money, 
and advertises "easy money." 

The metropolitan banker sees his scheme, and out of 
self protection, is compelled to some extent to do likewise. 

Other bankers know, if they allow their actual cash 
once out of their control, that other bankers will gobble it 
up, and that they will likely never see it again, except as 
evidenced by surplus reserves in the hands of their rivals, 
resulting in a badly loggerheaded situation, and a serious 
shortage for the every day purposes of trade. The banking 
associations of the United States owe, depositors alone, be- 
tween fifteen and twenty billions of dollars, deduct money 
held as reserves by corporations and the reserve held in 
the Federal treasury and it is safe to say that they have 
not got ten per cent of the total deposits to pay it back with. 
There is less than two and one quarter billions of dollars 
all told, of money and currency in the United States. Most 
of these deposits are payable on demand, should there be 
a concerted withdrawal of deposits, it is a physical impos- 
sibility for the banks to return any considerable amount of 
these total deposits at one time. 

They have no chance to meet their obligations to their 
depositors, unless money is redeposited, nearly as fast as 
withdrawn, and other individual securities are worked off 
in lieu of cash. When this latter is done, these evidences 
of private individual indebtedness have all the functions of 
money issued* by the federal government, when these latter 
securities are of suspected, or problematical value, there is 
chaos, and as they are entirely dependent for any value 

43 



whatever on an ample circulation of the medium of ex- 
change, it is easily seen what a complicated dilemma our 
financial associations are in. 

Banker "money broker" transfers his many security 
holdings into the safest value, i. e., gold bullion, as soon as 
this becomes known there is a financial panic, take the panics 
of 1893 and 1907 as criterions, two national panics in times 
of abundant harvests and prosperous business conditions. 
What would be the result in times of crop failure, or other 
national misfortune? 

To complicate the above condition it is openly stated 
that industrial promoters have bought large banking con- 
cerns with the palpable purpose of negotiating their per- 
sonally created securities indirectly to themselves, and to 
be able to raise money in stringent times from their asso- 
ciates and vice versa, and not be at the mercy of loan sharks 
in their need. 

The purchase of one of the largest New York City 
national banks a few years ago is a case in point. A noted 
western promoter was reported as saying that "his com- 
pany found it necessary to under-write themselves by pur- 
chasing a large interest in a New York financial institution." 
The president of this bank has relatives, that have been, and 
likely now are, actively engaged in financing and building 
many extensive electric power plants on the Pacific coast. 

It is certain that other men, who are promoting steel, 
wire and piping concerns and building electric power plants, 
and electric street railways, are following suit and buying 
banks with large deposit balances for a stated sum and pre- 
sumably negotiating their fiat stocks and bonds, as securi- 
ties for loans for a much greater sum than the original pur- 
chase price of the bank. 

Where is this jugglery to end,? Who but the trusting 
depositor will be caught when the periodical accounting day 

44 



comes? Such parleying of money and negotiating of their 
own securities to themselves, veiled under state corporate 
individualism, was exemplified by the trial and conviction 
of Mr. Chas. W. Morse of New York City recently. 

National banks are required to deposit a portion of 
their deposits or lawful reserves with some national bank, 
in some financial center, that is a U. S. depository. With a 
string of banks designing men can issue an endless chain 
of bank paper, that nearly balances and adds almost any 
desired amount to the cash balances of the aforesaid banks, 
when as a matter of fact no value exists for these reciprocat- 
ing drafts, etc. Informed bankers know this condition, and 
keep as much actual cash on hand as possible, which it to 
the direct injury of every day and normal business condi- 
tions. To some what eliminate this endless chain of bank 
credits as capital, and compel financial associations to ulti- 
mately pay out cash in their transactions, and to forestall 
a privately owned central bank, which would assume gov- 
ernmental perquisites and perogatives of money emission 
and credits, I drew a bill that compels national banking 
associations to deposit all of their lawful reserves, "that they 
do not keep in their immediate possession, directly with the 
United States Treasurer" instead of sending a prescribed 
portion to a depository national bank in some reserve city, 
that the U. S. Secretary of the Treasury be granted the 
same authority that private and national banks assume, of 
paying back such national bank deposits in such forms of 
money, as he finds convenient and necessary, also that every 
financial association that receives money deposits be re- 
quired to become a national bank. 

By so individualizing all banks, it will greatly relieve 
the situation, and eliminate many dangers of a money corner. 
As the federal government must have a large gold reserve 
to finance its bonds and currency money, as well as go for- 

45 



ward with its large internal improvements, there, was added 
the privilege of individuals depositing directly with the fed- 
eral authorities of sums over the amount of fifty dollars, and 
in lieu of such deposits, authority was granted the Secre- 
tary of the Treasury to issue a low rate bond. This bill is 
intended to harmonize with a post office savings bank meas- 
ure, and to be supplemented with a bill establishing many 
additional sub-treasuries in important business and trade 
centers. 




46 



Proposed Legislation 

Bill I. 



"An act whereby the national government assumes con- 
trol of all associations that receive lawful money on credit 
deposit and which specifies where all deposit reserves of 
national banking associations shall be kept, and for other 
purposes. 

"Be it enacted by the Senate and House of Representa- 
tives of the United States of America in Congress assem- 
bled: 

"I. That every association, which receives lawful 
money of the United States for deposit or credit shall, within 
six months from the passage of this Act, obtain a national 
bank charter, or Articles of Association under the super- 
vision of the Comptroller of the Currency, and such asso- 
ciations as comply with this Act, and no other, shall be al- 
lowed to receive any deposits whatsoever of lawful money 
of the United States or any certificate in lieu thereof, and 
shall hence forth be governed to all intents and purposes in 
the same manner as National Banking Associations. 

"II, That every National Banking Association shall 
be required, under the direction of the Secretary of the 
Treasury, to deposit with the Treasurer or any Assistant 
Treasurer of the United States, that the Secretary of the 
Treasury shall designate, all lawful money of its reserve 
that said National Banking Association does not keep in its 
actual and immediate possession, and the Secretary of the 
Treasury shall issue in receipt therefor registered certifi- 
cates of reserve deposit payable, to order on demand, such 
redemption to be in such form of. lawful money as the 

47 



Secretary of the Treasury shall deem expedient. Provided 
that no certificate of Reserve Deposit of less denomination 
than five hundred dollars shall be issued, and that no cer- 
tificate of Reserve Deposit shall carry more than one en- 
dorsement. Such certificate of Reserve Deposit when held 
by any National Banking Association shall count as part of 
its lawful reserve. 




48 



Proposed Legislation 

Bill II. 



"An Act authorizing the Secretary of the Treasury to 
receive certain individual deposits of lawful money from 
persons other than National Banking Associations, provid- 
ing for reimbursement of the same. And to receive certain 
deposits of lawful money from any person in exchange for 
Deposit Bonds of the United States, providing for the re- 
demption of the same, and for other purposes. 

"Be it enacted by the Senate and House of Representa- 
tives of the United States of America in Congress assem- 
bled: 

"I. That the Secretary of the Treasury is hereby au- 
thorized and directed to receive deposits of lawful money 
with the Treasurer or Assistant Treasurer of the United 
States, from any person or Association excepting National 
Banking Associations, in any amount, equalling or exceed- 
ing the sum of fifty dollars, and to issue registered certifi- 
cates of Individual Deposit therefor in denominations of not 
less than fifty dollars each, payable only at the place of deposit, 
on demand. Such certificates of Individual Deposit shall 
carry no more than one endorsement, and when held by any 
National Banking Association may be counted as a part of 
its lawful reserve. Provided that no endorsed certificate 
of Individual Deposit shall be valid and payable unless pre- 
sented to the Treasurer or Assistant Treasurer, by whom 
issued, within one year after its endorsement, but the Treas- 
urer or Assistant Treasurer on application of the remitter 
or payee of any such endorsed certificate of Individual De- 
posit may cause a new certificate of Individual Deposit to 
be issued in lieu thereof. Provided that any certificate of 

49 



Individual Deposit shall be a public debt of the United 
States and shall be payable out of any moneys in the Treas- 
ury, not otherwise appropriated. 

VII. That the Secretary of the Treasury is hereby au- 
thorized to receive at the Treasury or any sub-Treasury of 
the United States deposits of lawful money equalling or 
exceeding the sum of fifty dollars, and to issue, at 
par value, in exchange therefor registered Deposit Bonds 
of the United States, in such form as he may prescribe, in 
denominations of fifty dollars or multiples thereof, bearing 
interest at the rate of two per centum per annum, payable 
semi-annually, such bonds to be payable at the pleasure of 
the United States, after thirty years from the date of their 
issue. Said bonds to be payable, principal and interest, in 
gold coin of the present standard of value, and to be ex- 
empt from all taxes or duties of the United States, as well 
as from taxation in any form by or under state, municipal 
or local authority. Provided that any owner of said Deposit 
Bonds may make a request in writing to the Secretary of 
the Treasury for the redemption of any amount of said 
Deposit Bonds, and the Secretary of the Treasury upon the 
expiration of ninety days from the receipt of such request, 
shall redeem in lawful money any of such Deposit Bonds 
up to the amount of twenty-five thousand dollars, with ac- 
crued interest, and such further amount as in his judgment 
the exigencies of the Treasury warrant. Interest shall cease 
on such Deposit Bonds as are sought to be redeemed, upon 
the day that the Secretary of the Treasury designates as the 
day of redemption. " 



50 



Proposed Legislation 

Bill III. 



An act, for the purpose of purchasing sites and erec- 
tion of sub-treasuries in the City of Richmond, Va., and 
various other cities and for other purposes. 

Be it enacted by the Senate and House of Representa- 
tives of the United States of America, in Congress assem- 
bled: 

That the Secretary of the Treasury be and is hereby 
authorized and directed to acquire by purchase, condemna- 
tion or otherwise, a site and to contract for the erection 
and completion thereon, of a suitable building, including 
fire and burglar proof vaults, heating and ventilating ap- 
paratus and approaches complete for the use and accommo- 
dation of the United States sub-Treasury and other gov- 
ernment offices, in each of the following cities enumerated 
in this section, within its respective limit of cost including 
site, hereby fixed : 

Richmond, Va., Six Hundred Thousand Dollars. 

Charleston, S. C, Five Hundred Thousand Dollars. 

Savannah, Ga., Five Hundred Thousand Dollars. 

Atlanta, Ga., Seven Hundred Fifty Thousand Dollars. 

Jacksonville, Fla., Three Hundred Thousand Dollars. 

Tampa, Fla., Three Hundred Thousand Dollars. 

Mobile, Ala., Three Hundred Thousand Dollars. 

Birmingham, Ala., Three Hundred Thousand Dollars. 

Galveston, Tex., Five Hundred Thousand Dollars. 

San Antonio, Tex., Three Hundred Thousand Dollars. 

Memphis, Tenn., Five Hundred Thousand Dollars. 

Louisville, Ky., Six Hundred Thousand Dollars. 

Pittsburg, Pa., Six Hundred Thousand Dollars. 

51 



Cleveland, O., Seven Hundred Fifty Thousand Dollars. 

Buffalo, N. Y., Seven Hundred Fifty Thousand Dollars. 

Detroit, Mich., Six Hundred Thousand Dollars. 

Indianapolis, Ind., Six Hundred Thousand Dollars. 

Milwaukee, Wis., Seven Hundred Fifty Thousand Dol- 
lars. 

St. Paul, Minn., Six Hundred Thousand Dollars. 

Omaha, Neb., Six Hundred Thousand Dollars. 

Kansas City, Mo., Seven Hundred Fifty Thousand Dol- 
lars. 

Boise, Idaho, Three Hundred Thousand Dollars. 

Portland, Ore., Five Hundred Thousand Dollars. 

Los Angeles, Cal., Seven Hundred Fifty Thousand 
Dollars. 



52 



Central Bank 



Certain estimable gentlemen of "tory like" proclivities 
lately have been ostensibly elucidating the subject of finan- 
cial legislation, when, as a matter of fact they have simply 
tried to confuse and procrastinate action on the same. 

Apparently they have invited co-operation and sugges- 
tions from a multitude of financiers "for the purpose of 
simplifying and establishing a permanent national financial 
policy," in other words requesting "many cooks to make the 
broth." Their evident purpose was to complicate and post- 
pone any action whatever, except their own covert idea of 
a Central Bank (managed by a select clique) along the 
scheme of a railroad reorganization. 

The first directorate to be a temporary one, composed 
of well known and reputable figure heads, who would be 
supplanted by their own cable, as soon as the scheme was 
validated. 

I speak of these spellbinders as tories. My definition of 
a "tory" is one who sycophantly subscribes to the ruling 
power, or existence of things. A government as an institu- 
tion, is stable as its record of procedure and solvency war- 
rants. I submit a plan for the individualization of 
financial associations, instead of a central bank domi- 
nated by favored citizens. I contend for the supreme 
right of the sovereignty, as the central banker, and 
the reserve custodian for the nation at large, and of all 
created financial institutions, the one responsible power au- 
thorized to issue legal money medium of exchange and to 
assert the corollary right of taxation. 

I hold that the general government must eventually be 
the custodian and owner of sufficient gold bullion to dom- 

53 



inate the domestic financial situation. Conceding that a gold 
standard is the present day order of affairs financial, I sub- 
mit, that a gold reserve of ample proportions is an absolute 
necessity to any institution, that pretends to financial sol- 
idity. 

If a central bank of issue is considered a necessity, what 
better plan is proposed, than that the United States govern- 
ment assume this constitutionally delegated perogative, and 
inflate or contract the currency by financial appropriations 
and taxation, as the exigencies of the period require? 

While private associations can distribute money, they 
have no reliable means of acquiring it again, when desired. 

A central bank of issue is created purposely to over- 
come the constitutional inhibition of coining money, so it is 
proposed to manufacture credit and fiat money instead. 

The difficulty is, not so much that there is not money 
enough, but that what there is does not circulate. 

The principal money used in small transactions (the 
digestive system of trade) is currency evidences of money 
and subsidiary and fractional coins of greatly depreciated 
intrinsic value. Gold is held nearly entirely for reserve 
purposes, and the function, for the clearing house and a 
privately owned central bank, is to coalesce all financial in- 
stisutions, so that banks can at the same time lend money, and 
also keep it. Such a system would shortly eliminate every 
private capitalist in America. 

It is essential that the United States Treasury be the 
depository for the surplus of all banks. 

There is every argument and reason against allowing 
government, even indirectly, to surrender the function of 
money, or even money credit, issue to any coterie. 

There is not an institutional sovereignty on earth, but 
what has complicated, frequently embarrassed, and at times 
wrecked its government, by so doing. 

54 



The principle of the use of money is a fundamental one, 
and the issuance of currency is, but a temporary substitute 
for bullion coin, an indestructable and ever lasting basic ele- 
ment of value. 

The privilege of deposit with a convenient sub-treasury 
will bring forth practically all of the hoarded money, and 
will give the general government, which has unlimited pow- 
ers of emitting currency and other financial obligations, the 
means of balancing its finances, as domestic conditions re- 
quire. 

I also offer the proposition of deposit directly by indi- 
viduals, excepting banks, of a specific sum of money, and 
upwards, that should not rival, or compete with private en- 
terprise, or discommode the present arrangement of the 
Treasury Department, and will bring out much dormant 
money, which will be a needed and substantial increment to 
the reserve of the nation. 

To balance and safeguard national reserves, and allay 
criticisms of sectional preference I suggest that sub-Treas- 
uries of the capacity and clerical force of the sub-Treasury 
at Cincinnati, Ohio, in addition to those now provided for, 
be established at Richmond, Virginia ; Charleston, South 
Carolina; Savannah, Georgia; Jacksonville, Florida; At- 
lanta, Georgia ; Tampa, Florida ; Mobile, Alabama ; Birm- 
ingham, Alabama; Galveston and San Antonio, Texas; 
Memphis, Tennessee ; Louisville, Kentucky ; Pittsburg, 
Pennsylvania ; Buffalo, New York ; Cleveland, Ohio ; In- 
dianapolis, Indiana ; Detroit, Michigan ; Milwaukee, Wis- 
consin; St. Paul, Minnesota; Omaha, Nebraska; Kansas 
City, Missouri; Boise, Idaho; Portland, Oregon, and Los 
Angeles, California. 

I realize the difficulty, objection to, and insecurity of 
any financial department, that is not conducted along con- 
tinuous lines of policy, but for any critic to object to our 

55 



present financial bureau on such grounds, one might as well 
object to the theory and general scheme of government 
itself. As an American citizen, I absolutely demur to any 
plan, that makes the national sovereignty dependent on any 
uncertain circumstance or coalition of intangible or prob- 
lematical capital. 

It is an impossible position, unworthy of the dignity 
of a creative government. 

The Constitution arbitrarily and specifically delegates 
financial perogatives to the federal government. 

Many politicians seem willing to entrust, the fate of 
our nation, as well as their own individual prospects, to the 
blind theory of vested rights and international comity, that 
common sense, experience and statesmanship will recognize 
on analysis, as indefinite, irruptive and unstable. 

All signs of the times seem to indicate that this nation 
is unpreventably destined to endure and solve such domestic 
problems, as present themselves for consideration of its 
statesmen. 

The United States of America is a world wide pro- 
claimed democracy, the antithesis of a monarchy. It is not 
only an experiment and object lesson within itself, but it is 
also a governmental comparison, that the predominant lim- 
ited monarchies of the world, will insist endures in its in- 
tegrity, as an object lesson, and guide unto themselves, there- 
fore it little behooves this country, as a world affiliating sov- 
ereignty to follow, imitate, or be under, any connection, 
alliance or arrangement, that experience and ethics does not 
recommend. 

The statesmen of our country heretofore have been 
abundantly able to meet intricate questions of international 
consequence, and any unexpected foreign demand, that 
would drain us of our reserve bullion money, can be safely 
met, after it arises. 

56 



The theories of values and necessitites of the present 
day are too well understood by civilized propagandas to 
allow any person, organization of capital, or even a nation 
to corner any essential, or necessary commodity at the mo- 
mentary expense, or discomfiture of a helpless and unsus- 
pecting populace. 

Such conduct would savor of the nature of a seige, 
without recourse to the discomfitted. 

Not only would any unseeming demand for the pay- 
ment of untoward sums of specific gold bullion, or coin, 
from a foreign nation be a cause of war, but it would invite 
and excuse endless diplomatic assuagance. 

The secret of keeping a property is not to part with it. 
The idea that an individual should deliver his purse to for- 
eigners, strangers, or any one, only precludes future help- 
lessness and dependence. 

For a self contained nation, of the pretensions of the 
United States, it is puerile to think of adopting any finan- 
cial arrangement, that does not allow for extreme national 
perogative, and, considering that our present day system 
has been built on the theory of government control and re- 
sponsibility, the idea of corporate or individual dicta- 
tion, is certainly heretical, if not treasonable. 

While private fiat negotiable paper has, and likely will 
be an important factor in our commercial affairs, it is im- 
portant that the privilege be segregated to individual citizen 
option and responsibility. 

For the same reason that a credit or fiat money sys- 
tem would not be tenable for the federal government, it 
should be restricted, if not entirely abrogated to corpora- 
tions, that might later embrassass the nation by cornering 
bullion money under a pretext of business necessity. 

Canada has a younger experimental currency system 
that in its inception segregated banking institutions, and 

57 



under dominion government paternal authority limitation 
and regulation allows chartered banks to issue a percentage 
amount of individual bank note currency, that is a first lien 
on all assets of the corporation, and is under written by the 
most conservative system, that the central government was 
willing to endorse. As an institution (granting that any sys- 
tem of debt currency is sound finance) the Canadian method 
is worthy of notice. 

If the illusion, that the United States is too large and 
unwieldy for one set of laws to cover, that its interests are 
too diversified, that its institutions are too antagonistical to 
each other, that its theorem of government is unsound, has 
become so impregnated in the minds of certain lawmakers 
of the country, then ideas, logic and proffered methods are 
simply labor lost. 

I advocate that the government bank, hold the bul- 
lion reserve, issue all authorized money, exercise its non- 
delegatable sovereign right of taxation and distribution, and 
allow the patriotic people the privilege of showing their faith 
in democratic institutions, and acquiring a tangible interest 
in the welfare of the same, by depositing directly with the 
United States Treasurer, and buying low rate bonds at 
pleasure. With such constituency and material support, and 
the impetus of the money appropriated by the annual budget, 
safeguarded by a counteracting internal tax, the future gold 
reserve and national exchequer is as safe, as the life of the 
nation. 

The following plan is proposed : 1st, That the National 
Government first nationalize its financial system with the 
general government the custodian of as much gold bullion, 
as the fates will propitiously allow. 

2nd. That it be the original creator of such credit cur- 
rency, as is used in all ordinary business exchange trans- 
actions. 

58 



3d. That it individualize all financial institutions bv 
compelling national charter. 

4th. That it allow of individual deposit with the Sec- 
retary of the Treasury of sums exceeding fifty dollars. 

5th. That it issue on request two per cent, registered 
interest bearing bonds on amounts over, and multiples of 
fifty dollars. 

6th. That it establish additional sub-treasuries in many 
trade and sectional centers. 

7th. That it enact an internal revenue bill, similar to 
the "Spanish War tax" to safeguard its heavy budget of 
appropriations and expenditures. 




59 



Information for Agents 

The Allen-Clancey Agency, Walla Walla, Washington, 
offers an opportunity to reliable agents of canvassing for, 
or distributing "ALLEN'S POLITICAL ESSAYS/' 

These Essays are an endeavor to treat of many present- 
day economical and political subjects in a brief and poignant 
manner. They embrace articles on "Electric Power," 
'Telephones/' "Secret Societies, " "Three Letters to Public 
Officials," "Emigration," "Conservation of Resources," 
"Corporations," "Railroads," "Taxation," "Three Drafts of 
Proposed Financial Laws," "The Financial Situation" and 
. "The Central Bank," etc. 

The style is clear and the logic touches on many ele- 
mentary principles of ethics, law and government, and con- 
tains much information and food for thought, not found in 
any other publication. They should be of interest and value 
to every public-minded citizen in any sphere of existing so- 
ciety. The desire is to arrange for agencies in every com- 
munity in America. 

A limited number of agents is solicited in every locality. 

The recommendation of established Clergymen, Bank- 
ers and Merchants will be accepted for persons applying for 
agencies. 

No authority to collect money without delivery of the 
book will be permitted. Authorized agents can purchase 
fifty copies or over at one time for sixty cents each copy, 
express paid. Agents can purchase less than fifty and at 
least two copies for seventy cents each, postpaid. Single 
copies, one dollar, postpaid. The agency of country town 
newspapers, who will carry a generous advertisement con- 
tinuously, is especially desired. Such newspapers will be 
allowed to purchase copies in any number for sixty cents 
each, postpaid, and in towns of twenty thousand and less, 
can procure an exclusive agency, excepting the right of au- 
thorized agents to canvass w r here they wish. 

Regular agents, on their initial order, can obtain twen- 
ty-five copies, express paid, for twelve and one-half dol- 
lars. All subsequent orders will be at regular rates. No 
order will be considered unless accompanied by P. O. or 
express order, bank draft or cash. No exclusive territory 
will be given any agent, except on special contract. 

Address all communications to 

Allen-Clancey Agency, 

Walla Walla, Washington. 



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